Today, the Market Futures are showing some true positive movement. I say this, because for the past week the markets were showing some signs of consolidation, but today’s premarket action has triggered some key technical bullish signs. Also the US Dollar futures are indicating weakness in the premarket session. The US Dollar has been a good indicator, for the past few weeks, because is moving opposite of the US markets. We can also see this in the Forex pair Aus Dollar/US Dollar (the strength of the Australian Dollar relative to the US Dollar). Finally, Gold is also continuing its rally to higher prices. Are we looking to the next rally? The technicals are definitely showing this at this time.

The US Dollar has been rolling over, breaking down from a Bearish Rising Wedge. Now we are starting to see a little pause and it is corresponding with the pause in the move to higher prices in the Equity Markets. In this Video, I am showing you why this is happening and what are the areas where we can see this happening. All the Markets are affected by each other, the Equity Markets, the Currency Markets, and the Commodities. There will be an area of consolidation and possibly a pull back, but that will be all. The movement will continue as respectively and the technicals have shown why this will happen. The bottom line is, Technical Analysis becomes more and more relevant as technology progresses. The question is, are you resisting the technology? or are you learning how to interpret the technical tool? I hope for the latter if you are reading this.

So on the first day of trading of this wonderful New Year, the Markets breakout!!! That is as expected looking what the pattern was doing. Now we should be looking for a couple of days of consolidation and then to continue the surge to higher prices.  The US dollar is doing just the opposite just like I had said in the previous updates and the commodities are also following suit. Gold and Silver are both looking like they will resume their move to higher prices and Oil is by far my favorite for this year. Stays tuned and follow my targets for this year; this year is going to rock.

Just a quick recap of what happened yesterday through the eyes of the Exchanged Traded Fund SPYs, which tracks the S&P 500. All the market did, like I had pointed out on my last update, was a small pull back to back test the break out of the channel.  So far pre-market it looks like the markets could have enough force to break through the Symmetrical Triangle pattern I have pointed out on my last few updates.  The area to watch would be the highs from yesterday in the S&P 500 futures, once the market breaks through that area, we could be seeing a break out of the Symmetrical Triangle. It would be interesting to see if the markets have enough force to have a Santa rally!!!

So after having a crazy end of the month rally last month, now it looks like the markets are going to go to zero! Well, here is the real matter. The US Dollar, Gold/Commodities, and The Equity Markets are all working in sync. In this video I show how the have all moving together and were we should be looking for all three to end up at.  There are always times where the technicals can over shoot targets, patterns, and or Support/Resistance areas, but this is why we always look at the bigger picture of where markets have come from and where they are heading. I will keep a close eye for any changes, until then not much has changed and this video will show why.

A quick pre-weekend update reviewing the action from the past week and making sense of the volatility using Technical Analysis.

So far all three markets are working interrelated to each other. Meaning, they move either opposite or conjunctive to one or the other.  This is the reason why I keep looking at this markets for a signal and a direction of the equity markets. Watch this video and see how their relationship is giving technical signals to traders and the market makers.

Earlier I posted a video where I was talking about an “Energy” ETF  but it was the Financial ETF. My appologies, I kept looking at both ETF’s and I just left the wrong one up for the video. So this whole video is all about the XLE, which is the real Energy ETF. Until next time.